Intel/McAfee Flesh Out Joint Strategy

McAfee (MFE), which is soon to become part of Intel (INTC), fleshed out its long-term security strategy at the RSA conference this week, vowing to secure nuclear reactors and defense systems.

The software maker announced an agreement with Intel's Wind River subsidiary to develop and market security solutions for non-PC devices, part of a broader push into mobile device security and embedded devices.

McAfee's CEO, Dave DeWalt

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In a statement released on Wednesday, McAfee explained that embedded devices are part of the technology infrastructure of nuclear reactors, utility grids and even defense communication systems.

"Embedded devices are everywhere, allowing us to communicate and improve aspects of our daily lives," explained Dave DeWalt, the McAfee CEO. "These instrumental pieces of our lives also pose a great risk and securing them is imperative."

Wind River is Intel's division building software for mobile and embedded devices, and has promised a phased rollout of joint solutions with McAfee during 2011.

"The McAfee/Intel combination seeks to secure the billions of non-PC devices that are non-discrete, increasingly network connected, and therefore vulnerable to threats," added Brad Zelnick, an analyst at Macquarie Securities, in a note released this week. "Think automotive, mobile, industrial controls, defense systems, power grids -- all which rely on embedded software."

The analyst, however, does not anticipate any impact on McAfee's shares.

Chipmaker Intel shocked many tech sector observers when it spent $7.7 billion on security software maker McAfee last year, taking the tech bellwether into a completely new market. The acquisition is expected to close by the end of this quarter.

There was speculation that Intel would initially use McAfee to bolster its microprocessor security, although it now appears that McAfee's strengths will be applied to non-PC devices. McAfee CEO Dave DeWalt recently told TheStreet that his firm will be making a silicon-related announcement in the spring.

"While many have anticipated product integration within the microprocessor, the initial strategy focuses on embedded software (i.e. Wind River) and further unlocks McAfee's security vision 'from silicon to satellite,'" wrote Zelnick.

Shares of McAfee, which competes with Symantec (SYMC), were down a penny, or 0.02% on Friday, to $47.90. Intel's stock, however, was up 10 cents, or 0.46%, to $22.07.